Wall Street Rallies After Powell Signals Rate Cut, Dow Hits Record: Closing Bell

Watch comprehensive cross-platform coverage of the U.S. market close on Bloomberg Television, Bloomberg Radio, and YouTube with Romaine Bostick, Scarlet Fu, Carol Massar and Tim Stenovec.

Stocks surged, reversing a week of losses and sending the Dow Jones Industrial Average to a record, while bond yields fell as surprisingly dovish comments by Jerome Powell convinced investors that rate cuts are all but guaranteed.

By shifting focus toward risks in the jobs market, the Federal Reserve chief signaled it may not wait for perfect inflation before slashing rates.

That was enough to trigger a broad rally that drove the S&P 500 up 1.5% - the most since May - as investors piled into shares that tend to do well amid lower borrowing costs. All tech megacaps gained, a measure of small firms jumped 4% and banks hit all-time highs. The crypto world roared.

As traders boosted wagers on a September Fed move, Treasuries climbed across the curve, with two-year yields sinking 10 basis points. A dollar gauge slid about 1%.

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